The G20 presidency has re-iterated its pledge to ensure that inclusive development is a central focus of its summit in November.
The G20 presidency has re-iterated its pledge to ensure that inclusive development is a central focus of its summit in November.
This follows a high-level annual dialogue with Commonwealth and La Francophonie (CF) countries in Washington last week, attended by ministers and senior government officials from CF member states, the Turkish G20 Presidency and Development Working Group, as well as international and regional organisations.
At the meeting, CF countries called on the G20 to provide “practical support” for key development challenges, with measures to address high debt burdens, create more inclusive international trade systems, protect the flow of remittances and strengthen the effectiveness of domestic and international tax policies and cooperation.
Caribbean representatives expressed concerns about “crippling” debt in the region, and its adverse impact on infrastructure development, growth and economic stability.
Officials stressed the need for access to finance on affordable terms that take into account a country’s vulnerabilities to external shocks such as climate change. They called for a reformed debt restructuring architecture and debt relief for highly indebted small and vulnerable Caribbean countries.
A taskforce to explore solutions to the crisis, innovative mechanisms such as swapping debt for environmental conservation and climate change adaptation measures should be considered, they said.
CF countries also noted that unfavourable geographic locations and the limitations of their domestic markets are hampering their participation in international trade, and excluding them from important Global Value Chains (GVCs) - which are the full range of activities required to produce goods and services.
In response, the Commonwealth stressed the need for more effective governance of GVCs and the mitigation of the implications of regional trade agreements. The UK, as part of the G20 development working group, responded with a proposal to explore the establishment of a fund to help low income countries integrate into GVCs.
The importance of remittances, which exceed Official Development Assistance and Foreign Direct Investment in many developing countries, was also brought into sharp focus as delegates highlighted the challenges posed by anti-money laundering / counter terrorist financing regulations.
Commonwealth Deputy Secretary-General Deodat Maharaj said: “We now have a situation where a great number of money transfer operators are being shut down, and this is having a marked impact on the vital flow of finances that remittances provide. Countries are clear that they are fully committed to the global effort against money laundering and terrorist financing, and so we need to find a way to ‘de-risk’ remittances while maintaining their flows in a way that is cost effective for those sending and receiving them.”
He added: “The good news is that the G20 has given an ear to this and other critical issues that affect CF states. Turkey’s commitment to explore measures to reduce the cost of money transfers from 10% to 5% is evidence that this dialogue is meaningful and effective.”
Maximising domestic revenue potentials was also discussed, with countries calling on the G20 to address challenges related to international tax relief conventions, and to act to strengthen audit capacities, legislative frameworks, and the information systems necessary for more effective tax structures.
Mr Maharaj thanked the Turkish G20 presidency for “recognising the importance of engaging with countries - many of whom are small, vulnerable and with limited resources, and who do not get to sit around the G20 table where global and critical decisions are made.”
He said: “The discussions at the CF-G20 meeting were substantive and forward looking. Developing countries were given the opportunity to table some very difficult issues. We sincerely hope that this important dialogue will help to shape the final agenda of the 2015 G20 summit.”
The Turkish Presidency committed to ensuring that the content of the discussion and ideas put forward would feed into broader G20 discussions.